- Home owners who paid less than $75,000 for their home were the most satisfied at 77 percent.
- Home owners who paid more than $800,000 were least satisfied at 69 percent.
- Buyers who purchased a home via short sale had the highest satisfaction rate at 83 percent, followed by foreclosed home buyers at 79 percent.
- New-home buyers had a satisfaction rate of 73 percent, and existing-home buyers had a satisfaction rate of 71 percent.
- Home owners ages 55-65 were the most satisfied at 76 percent. Home owners between 18 and 25 had the lowest satisfaction rate at 45 percent.
Cities and municipalities are having trouble spending the money allotted by the controversial Neighborhood Stabilization Program, which was passed by Congress last year to acquire houses in blighted neighborhoods.
The goal was to buy vacant properties at 1 percent less than appraised value, rehab them, and either sell or rent the homes to low-income residents.
The stumbling block is that the houses are being purchased by private investors and more affluent home buyers at cheap prices.
Some people don’t see that as a problem. “If the private market is coming back and buying houses and crowding the government out, that’s not a bad thing,” said Joseph Pigg, senior counsel at the American Bankers Association.
In some areas, the nonprofit National Community Stabilization Trust is working with banks to give government access to foreclosed homes before they are put on the market. But that may be too little, too late. “It’s very unclear when the dust settles how much real change in neighborhood stability and quality of life we’ll see,” said housing expert Alan Mallach of the Brookings Institution.
Source: CNNMoney.com, Tami Luhby
Apartment vacancies are rising nationwide, driven by job losses.
Housing experts expect the multifamily vacancy rates will soon be at 8 percent nationwide, higher in some areas.
“Apartment vacancies in the fourth quarter went from around 6 percent to 6.7 percent so it was a very quick reaction,” says Hessam Nadji, managing director of research for real estate brokerage Marcus & Millichap.
Top-of-the-line properties are having the greatest difficulty finding tenants, while Class B and C buildings are holding up better.
“People are dialing down their residential expenses,” says Richard Anderson, BMO Capital Markets analyst.
The downturn is pushing down sales prices for apartment buildings, and construction was off 35 percent in 2008. Marcus & Millichap predicts it will decline another 40 percent to 50 percent in 2009.
In the long run, though, this could be good news for landlords. “If you fast-forward to 2011 and 2012, you will see very little new supply and favorable renter demographics in the number of 18- to-34-year-olds,” Nadji says.
Source: Investor’s Business Daily, Marilyn Alva 02/05/09